Apple released two iPhones on Tuesday—a less-expensive model dubbed the iPhone 5C for $99 with a 2-year contract along with a new high-end phone called the iPhone 5S for $199 with a contract.

Phil Schiller, Apple’s senior vice president of worldwide product marketing, speaks on stage during the introduction of the new iPhone 5c and 5s.

Associated Press

And while for Apple, the two models allow it to reach out to more customers, the fortunes of some of its suppliers will vary widely depending on which phone becomes popular.

Analysts say that the biggest swing factor is whether consumers in emerging markets take to the lower-cost iPhone 5C. With its plastic casing, it’s a departure from Apple’s longtime strategy of cementing itself in the high-end market, and a bid to grab consumers in emerging markets.

Investors dumped shares in the 5C’s main assembler, Taiwan’s Pegatron Corp., on Wednesday, suggesting they weren’t thrilled with the lower-cost model. The company’s price fell 4.7% to44.20 New Taiwan dollars ($1.49) on Wednesday morning against a decline of 0.4% in the benchmark index. It led the fall among Apple’s Taiwanese suppliers.

He also says that there is likely to be some cannibalization between the models, noting that both have a 4-inch screen and other similar features.

“If the iPhone 5S, which has a fingerprint sensor, does better, it will benefit Hon Hai and Foxconn Technology,” said Mr. Liao. “The iPhone 5C is mainly assembled by Pegatron with casings from Jabil.”

Shares of Hon Hai Precision Industry Co., also known as Foxconn Technology Group, were down 1.6% at 75.80 New Taiwan dollars, while its spun-off casing maker Foxconn Technology Co., which supplies metal shells for the 5S, was trading 0.3% lower at 76.40 New Taiwan dollars. Apple’s camera lens supplier Largan Precision Co. fell 1.2% to 998 New Taiwan dollars.

Apple has been diversifying its supply base and expanding its product lines to capture a wider range of consumers. This means a bigger divergence of fortunes among Apple’s suppliers, depending on which product they work on – and certainly less power for each of them.

It also raises the question of how much Apple’s new strategy will boost overall sales for suppliers. Nomura estimates that the total demand for iPhone components in the second half of this year will be similar to the same period last year.

“In the future, the potential shipment volume for each new model won’t be as big, so no one will have the leverage of Hon Hai,” UBS analyst Arthur Hsieh said.

For now, Hon Hai remains Apple’s largest device assembler, as well as a supplier of some components. Its scale allows it more bargaining power, but Apple has been shifting orders to other assemblers like Pegatron to diversify its risk.